Maybe. You can take the solar tax credit in the year the system was placed in service if you meet the eligibility criteria, see link.
However, in order to deduct the interest on the home equity loan, there is a different set criteria that must be met. The main requirement is that the funds be used to buy, build or substantially improve the home. See Deducting Interest on HELOCs to see all of the requirements. According to the IRS, an improvement is substantial if it:
- Adds to the value of your home,
- Prolongs your home's useful life, or
- Adapts your home to new uses.
Repairs that maintain your home in good condition, such as repainting your home, aren't substantial improvements. However, if you paint your home as part of a renovation that substantially improves your qualified home, you can include the painting costs in the cost of the improvements. See Pub 936.
If you’ve ever used part of the loan to pay for things other than the home, you cannot deduct the interest from that amount of the loan, even if the transaction didn’t take place this year.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
